Bharat Dynamics Ltd

Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.

Bharat Dynamics Ltd trades at ₹1,190, in a downtrend and 34 weeks into that stage. That is −11.3% against its own 200-day average. It sits at 11% of a 52-week range of ₹1,137 to ₹1,614. On relative strength it is currently behind the NIFTY 500 on a trailing-13-week view (3 weeks and counting).

Today the stock is in a downtrend — week 34 of stage 4, confirmed. At ₹1,190 it trades −11.3% versus its 200-day average and sits at 11% of its 52-week range (₹1,137–₹1,614).

Against the market, two honest reads. Cumulative: over the last 8.5 years the stock moved +511% while the NIFTY 500 moved +157% — ahead of the index over the full window. Recent form: on a trailing-13-week view the stock is currently behind (3 weeks and counting; last ahead the week of 2026-08-21) — the ribbon below is that same metric, week by week.

What would end the trend, mechanically: two Friday closes in a row below the 200-day line. That is the exit rule — no debates.

Valuation P/E is the price of ₹1 of annual profit: how many rupees the market pays for each rupee the company earns in a year.

Bharat Dynamics Ltd trades at 83.8× P/E, at the pricey end of its own range (82nd percentile). Its long-run median P/E is 27.1×, measured across 8.5 years of weekly readings. This places the multiple against the stock’s own record, and says nothing about what the business is worth.

Today's P/E of 83.8× is at the pricey end of its own range (82nd percentile), against a long-run median of 27.1× measured over 8.5 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

Why the multiple sits where it does: over the past year annual EPS moved −23.5% against a −24.0% price move — earnings outran the price, pushing the multiple DOWN its own range.

The price move, decomposed: over 5y, of the +43.2%/yr price move, ~+10.6%/yr came from earnings growth and ~+32.6 pp from the multiple (expanding). The split is the honest approximate (price return minus earnings growth); it makes the rally itself visible instead of hiding it behind the percentile.

Put together: the multiple is full against its own past, so the story rests on the earnings line underneath it, not the multiple.

Stage: Deteriorating Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read. CAGR (compound annual growth rate) is the smooth yearly pace that turns the starting value into the latest one — the fairest way to compare growth across different time spans. Read the columns together: if the 1-year number towers over the 10-year, recent growth is running hotter than the long-run trend. A dash means that window is not held, or the base year was a loss (where a growth rate is not meaningful).

Bharat Dynamics Ltd reads as deteriorating on its fundamental arc. Deteriorating — revenue, profit and EPS growth are shrinking (revenue growth −18.7% latest against +82.7% at its 12-quarter best), ROCE slipping at 7.5%. The read is built from 12 quarters across 4 curves, on full evidence.

🚨 Why it matters: falling curves mean every cheap-looking ratio below needs a discount for direction.

4-Factor Sector Score

35.2/100 — rank 20 of 25 in Aerospace & Defence - Equipments · 93% evidence confidence

Bharat Dynamics Ltd scores 35.2 out of 100 against the 25 companies it is compared with in Aerospace & Defence - Equipments, ranking 20. Balanced evidence: keep at normal research priority and require another comparable period before raising conviction.

The four contributions add to the total exactly: 12.1 + 13.3 + 5.9 + 3.9 = 35.2. This is the SAME number shown on the sector comparison — it is computed once, for the whole peer set, and read here.

What would change it: The read weakens if profit growth turns negative or margin improvement reverses while sector-relative strength deteriorates.

Revenue Revenue is the top line: everything the company billed its customers in the period.

Bharat Dynamics Ltd reported ₹572 Cr of revenue in the Jun 26 quarter, +130.6% year on year. Over 10 years it has compounded at −5.0% a year. The last full year, FY26, came in at ₹2,442 Cr. The last four reported quarters add to ₹2,766 Cr.

FY26 revenue came in at ₹2,442 Cr (−27.0% on the year), capping 10 years at −5.0% compound. The latest quarter (Jun 26) printed ₹572 Cr, +130.6% year on year.

Pace check: the last four quarters averaged +34.0% growth against the decade's −5.0% — the current year is running faster than its own long-run rate.

Acceleration check: trailing-twelve-month revenue grew −18.7% over the last 4 quarters against +10.6%/yr over the last 8 — rolling over; TTM profit −7.1% vs −5.1%/yr — stabilising.

Operating margin Operating margin is what is left of every ₹100 of sales after running the business, before interest and tax. It is the cleanest read on pricing power and cost control.

Bharat Dynamics Ltd's operating margin is 15.0% in the Jun 26 quarter, +33.0 percentage points against the same quarter a year ago. Across 13 fiscal years the operating margin has ranged −1.0% to 26.0%. The current quarter sits inside that band.

The latest quarter's operating margin is 15.0%, +33.0 pp against the same quarter a year ago. Across 13 fiscal years the operating margin has ranged −1.0%–26.0%.

Why the margin moved: operating margin went +32.8 pp year on year while gross margin went −24.6 pp — the gain came mostly from the gross line: input costs and pricing.

Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.

Bharat Dynamics Ltd earned ₹119 Cr of net profit in the Jun 26 quarter, +561.1% year on year. Full-year FY26 profit was ₹420 Cr. The 10-year compound rate is −2.9%. That is 20.8% of the quarter's revenue. The same quarter a year earlier earned ₹18.0 Cr.

Jun 26 profit was ₹119 Cr, +561.1% year on year. On the full year, FY26 printed ₹420 Cr (−23.6%), and the 10-year compound rate is −2.9%.

Why profit moved: revenue contributed +130.6% and the margin +33.0 pp — the quarter was margin-led: most of the profit growth came from keeping more of each sale.

Pace comparison, last four quarters: profit +132.0% vs revenue +34.0%. Profit is growing faster than sales — fixed costs are being spread over a bigger base, and each extra rupee of revenue drops more to the bottom line.

Cash flow — the router The P&L says what was earned; the cash-flow statement says what actually arrived. Operating cash flow (CFO) against profit is the cleanest lie detector in the accounts.

Over the last 3 fiscal years 75% of Bharat Dynamics Ltd's reported profit arrived as operating cash — most of the profit is real cash. In FY26 that was ₹604 Cr of operating cash against ₹420 Cr of profit. After ₹166 Cr of capital spending, ₹438 Cr was left as free cash.

FY26: operating cash of ₹604 Cr against reported profit of ₹420 Cr, leaving free cash of ₹438 Cr after ₹166 Cr of capital spending. Across the last 3 fiscal years the conversion rate is 75% of profit.

Cash-flow readings here are annual — that is the resolution our series carries, so this section moves once a year.

Why conversion sits at 75%: the cash cycle stretched 223 days between FY21 and FY26 — more of each rupee of profit waits inside the cycle before arriving.

Router verdict: conversion is below par and the cash cycle has stretched 223 days — the next section's job is to find where the cash is stuck.

Where the cash goes Working capital is the cash tied up between paying suppliers and getting paid: debtor days (customers owe), inventory days (stock waits), and the cash conversion cycle (the whole loop, in days of sales).

Bharat Dynamics Ltd's cash conversion cycle runs 598 days in FY26, up from 375 days in FY21. Capital spending ran ₹508 Cr over the last 3 years. At FY26 sales of ₹2,442 Cr each day of that cycle holds about ₹6.7 Cr, so roughly ₹4,001 Cr sits inside the business at any moment.

FY26: debtors at 63 days, inventory at 1,381 days — roughly 45.4 months of stock waiting to sell; that is where the cash sits while it waits — for a full cycle of 598 days, looser than FY21's 375.

The full loop: cash goes out to suppliers and production on day 0; stock waits 1,381 days to sell; customers pay about 63 days after that; and suppliers themselves are paid at 846 days — netting out to the 598-day cycle.

In money terms: at FY26 sales of ₹2,442 Cr, each day of the cycle holds about ₹6.7 Cr — so the 598-day loop keeps roughly ₹4,001 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹508 Cr over the last 3 fiscal years against ₹214 Cr of depreciation — the company is building well ahead of wear-and-tear. Capital work-in-progress stands at ₹174 Cr (FY26) — capacity paid for but not yet earning.

The synthesis: the working-capital loop is the cash sink the router flagged — watch the cycle, not the P&L.

Return on capital Return on capital employed (ROCE) is the profit the whole business earns on all the money in it — equity and debt together. It is the single best test of whether growth creates value or just size.

Bharat Dynamics Ltd earns a ROCE of 14% in FY26. That is up from a trough of 13% in FY21. Return on invested capital clears the cost of that capital by −7.9 percentage points, so growth here is not yet paying for the capital it uses. The wiring behind it is 17.2% net margin on 0.17× asset turns.

FY26 ROCE is 14%, recovered from a FY21 trough of 13% — the full ladder below shows the fall and the climb, undoctored.

🚨 Why the return is what it is — the wiring (FY26): 17.2% net margin × 0.17× asset turns × 3.36× balance-sheet leverage ≈ 9.8% on equity. Margin is doing the heavy lifting; leverage is a meaningful part of the equation.

The capstone test — ROIC − WACC: 4.1% − 12.0% = a −7.9 pp spread. The 12.0% is a standing assumption for the cost of capital in India, not a per-stock estimate — read the sign and the size of the spread, not the decimals. Negative — growth at these returns destroys value until the returns recover.

Debt Debt-to-equity says how much of the business is funded by borrowings. Low is the safe corner; the trend matters as much as the level.

Bharat Dynamics Ltd carries total debt of ₹0.0 Cr against shareholder equity of ₹4,241 Cr as of Mar 26, a debt-to-equity of 0.00 — effectively unlevered. On the annual view that ratio went from 0.00 in FY22 to 0.00 in FY26. The returns elsewhere on this page are therefore earned rather than borrowed.

Mar 26: total debt of ₹0.0 Cr against shareholder equity of ₹4,241 Cr — a debt-to-equity of 0.00. On the annual view, debt-to-equity went from 0.00 (FY22) to 0.00 (FY26). The returns on this page are earned, not borrowed.

Ownership Who owns the stock, quarter by quarter: promoters (the controlling owners), foreign and domestic institutions, and the public. Steady accumulation by people close to the numbers is a signal; a quiet register is also an answer.

Domestic institutions added 2.0 points of Bharat Dynamics Ltd over 8 quarters, the biggest move on the register. That takes domestic institutions to 11.5% of the company. Foreign institutions moved −1.4 points over the same window, to 1.7%. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — Domestic institutions: +2.0 points over 8 quarters to 11.5%; Foreign institutions: −1.4 points over 8 quarters to 1.7%; Promoters: +0.0 points over 8 quarters to 74.9%.

Why the register moved: domestic institutions drove it (+2.0 points), absorbed on the other side by foreign institutions (−1.4 points) — steady accumulation by institutions reading the same numbers this page reads.

Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.

Bharat Dynamics Ltd: the Z-score is not available for this stock, so we say so rather than invent one. It is a distance-to-distress estimate from the balance sheet, not a forecast of failure. The debt, cash-flow and return sections above carry the balance-sheet evidence this page does hold, and each of them states its own reporting date.

The safety line in one sentence: the Z-score is not available for this stock, so we say so rather than invent one.

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